Latest news with #LME-approved
South China Morning Post
15-04-2025
- Business
- South China Morning Post
Hong Kong warehouses get LME approval as exchange eyes China metal trade
The London Metal Exchange (LME) has approved four warehouse facilities in Hong Kong, extending its global network to the doorstep of mainland China, the world's largest consumer of metals. Advertisement The new facilities would be able to begin storing seven of the 14 LME-approved metals within three months, the exchange said in a statement on Tuesday. 'Hong Kong is now well-positioned to further develop as a key global metals hub servicing the region and as a gateway for access to the mainland China market, reinforcing Hong Kong's vital role as an international financial, trade and logistics centre,' said LME CEO Matthew Chamberlain. Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the decision would further promote the development of Hong Kong's commodity market and strengthen its role as an international financial, shipping, and trading centre. LME-approved warehouses in Hong Kong would offer efficient delivery channels for metals trading, attracting related businesses and boosting the city's role in global commodities and logistics, he added. Advertisement The announcement followed LME's January decision to add Hong Kong to its global warehouse network, aiming to meet growing demand for the physical exchange of metals between mainland China and the rest of the world. The LME has more than 450 authorised warehouses across 33 locations worldwide. The exchange has been eyeing China as a warehouse location since 2012, when it was acquired by Hong Kong Exchanges and Clearing (HKEX) for US$2.2 billion.
Khaleej Times
24-02-2025
- Business
- Khaleej Times
Copper prices slip on tariff threat and Chinese inventories
Copper prices slipped on Monday as traders focused on U.S. President Donald Trump's tariff threats and changing demand signals from inventories in top consumer China. Benchmark copper on the London Metal Exchange (LME) was down 0.8% at $9,483 a metric ton at 1723 GMT. It had gained 8% since the start of the month on hopes of stronger demand from China after its Lunar New Year holiday. Trump has said he is planning to impose tariffs on aluminum and copper - metals needed to produce U.S. military hardware - to entice producers to make them in the United States. "Tariffs pose a headwind to growth and demand," said Bank of America analyst Michael Widmer, "The last time Trump introduced tariffs in 2018, many investors rightly concluded that shorting base metals was a very attractive trade." Meanwhile, copper stocks in warehouses monitored by the Shanghai Futures Exchange have climbed above 260,000 tons, having stood at about 83,000 tons at the start of the year. In Shanghai's bonded warehouses, copper inventories have more than doubled to 33,000 tons since mid-January. Also weighing on copper was data from the International Copper Study Group (ICSG) showing the market had a 301,000 ton surplus last year, compared with a 52,000 ton shortfall in 2023. Meanwhile, stocks of copper in LME-approved warehouses have risen 12% to 267,225 tons since February 12. However, cancellations - metal earmarked for delivery - at 84,400 tons suggest that large amounts of copper are likely to leave LME warehouses over coming days and weeks. Traders expect much of this copper to end up in COMEX warehouses in the United States, where prices have soared relative to the LME on nervousness about tariffs on copper imports. In other metals, aluminium was down 1.1% at $2,655 a ton, zinc fell 2.7% to $2,848, lead retreated 12% to $1,985, tin slipped 1.6% to $33,150 and nickel ceded 0.4% to $15,455.
